The Diagram Below Shows an AD/AS Model for a Hypothetical

question 84

Multiple Choice

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A.
FIGURE 24-3
-Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from AD1 to AD2.At the new short-run equilibrium,the price level is ________ and real GDP is ________.

• A)90; 900
• B)110; 800
• C)60; 1000
• D)60; 700
• E)90; 1250

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Definitions:

Profit Margin Percentage

A financial metric that measures the amount of net income earned with each dollar of sales by comparing net income and net sales.

Marketing Mix

A set of controllable marketing tools—product, price, place, and promotion—that a company uses to pursue its marketing objectives in the target market.

Target Market

A specific group of potential consumers at whom a company aims its products and services, identified through variables such as demographics, behaviors, and needs.

Micromarketing

Marketing efforts focused on a narrowly defined audience segment, offering highly personalized products or communication to meet unique needs.